• At CES 2026, Ambarella launched its CV7 edge AI vision SoC, built on Samsung’s 4nm process with third-generation CVflow acceleration, and unveiled its online Ambarella Developer Zone to streamline building and deploying edge AI applications across its SoC portfolio.
• Together, the CV7 and DevZone moves suggest Ambarella is shifting from a pure chip supplier toward a broader platform approach that tightly links its hardware and software ecosystem for edge AI developers.
• Next, we’ll examine how the new DevZone platform could influence Ambarella’s edge AI growth narrative and partner-driven expansion.

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Ambarella Investment Narrative Recap

To own Ambarella, you need to believe its edge AI SoCs and software ecosystem can scale beyond today’s IoT-heavy base while the company works toward narrowing losses. The CV7 launch and new DevZone support that thesis, but do not materially change the near term risk that rising R&D and platform spending could pressure margins if design wins do not convert into larger, sustainable volumes.

Of the recent news, the Ambarella Developer Zone stands out because it connects directly to the company’s unified architecture and software platform catalyst, aiming to make it easier for partners to build on its chips. If DevZone meaningfully accelerates partner onboarding, it could help broaden Ambarella’s revenue mix over time and reduce its dependence on more cyclical consumer and portable video demand.

Yet while the product story is improving, investors should still be aware of how higher operating costs could start to bite if...

Ambarella's narrative projects $526.3 million revenue and $74.3 million earnings by 2028. This requires 14.8% yearly revenue growth and a $162.9 million earnings increase from $-88.6 million today.

Uncover how Ambarella's forecasts yield a $97.45 fair value, a 42% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$63.74 to US$105, showing very different views on Ambarella’s prospects. Against this wide range, the key question remains whether its expanding edge AI platform can outpace rising costs and IoT concentration risks over time.

Explore 6 other fair value estimates on Ambarella - why the stock might be worth as much as 53% more than the current price!

Build Your Own Ambarella Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ambarella research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Ambarella research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ambarella's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.